The Michigan Gaming Control Board (MGCB) has submitted comments to the Commodity Futures Trading Commission (CFTC) expressing strong concerns about the offering of sporting event contracts in Michigan.
MGCB Says Any Form Of Internet Sports Betting Must Comply With The LSBA
In a letter addressed to Acting Chairperson Caroline Pham, Executive Director Henry Williams argued that these contracts — financial products that allow users to trade on the outcomes of sports events — are equivalent to internet sports betting wagers that are subject to the Lawful Sports Betting Act (LSBA).
Michigan Raises Concerns to CFTC About Sports Event ContractsEntities offering sporting event contracts without a sports betting operator license issued by the MGCB may be violating Michigan law. Such platforms could be classified as illegal gambling operators.
Michigan Raises Concerns to CFTC About Sports Event Contracts Henry Williams, Executive Director of the MGCB. Michigan Raises Concerns to CFTC About Sports Event ContractsMGCB Cites Four Key Regulatory Standards In Letter
The MGCB’s letter outlines four key regulatory standards that apply to internet sports betting and sports prediction markets in Michigan, including:
Licensing and Oversight: Michigan law requires that all sports betting operators, platform providers, and certain individuals be licensed, undergo thorough background checks, and demonstrate suitability to protect consumers.
Responsible Gaming: Licensed operators in Michigan are required to offer their patrons a comprehensive suite of responsible gaming tools and maintain a statewide self-exclusion program.
Consumer Protection: Licensed operators must secure patron funds, process withdrawals promptly, and provide complaint resolution options, among other safeguards.
Event Integrity: Events and wager types must be approved by the MGCB and be subject to integrity monitoring and fraud prevention protocols.
In addition, the MGCB also mentioned that diverting sports betting activity away from licensed Michigan operators could lead to a reduction in state, local, and tribal government revenues.
“The potential for financial harm to both consumers and government programs is real,” added Williams. “Any erosion of the legal, regulated sports betting market undermines the very safeguards we have in place to protect Michiganders.”
The MGCB has urged the CFTC to consider these concerns.
Jose is an iGaming analyst with wide experience within the sector. He has been working as content writer on casino and betting websites for more than 10 years, contributing on websites like Pokerlistings, Casinobee, Betpack among others, sharing his insights and perspective for the future ofthe iGaming market.
